Mumbai, December 5, 2017: India’s largest* cash management company CMS Info Systems Limited, announced that Mr. Krzysztof Wieslaw Jamroz, an independent Director of CMS since March 2016, was elevated to Chairman of the Board as of August 2017.

Mr. Jamroz presently serves in the capacity of the Chief Executive Officer of STG Holdings LLC and is also the Executive Chairman of St. George Logistics, U.S.A. He has more than 15 years of experience across Cash Management, Investment Banking and Logistics sectors. He was till recently the President and Chief Operating Officer of the Cash Services business of GardaWorld Corporation. He has also served as the head of JP Morgan’s corporate finance practice in Canada. Mr. Jamroz holds a bachelor’s degree in Business Studies from Birmingham City University and a master’s degree in Business Administration from Schulich School of Business, York University, Canada.

Announcing these appointments to the board, Mr. Rajiv Kaul, Executive Vice Chairman, CEO & Whole Time Director, CMS Info Systems Limited, said,“Mr. Jamroz’s counsel over the last 18 months has been invaluable to our team as it has helped us identify new growth opportunities to serve banks in India. His elevation to Chairman of the board reflects our commitment to keeping our senior management a diverse group of highly experienced and qualified professionals.”

Commenting on the appointment, Mr. Jamroz, said: “My experience as an independent member of the board of CMS so far has been exciting since the India cash management market has the potential to grow along-side its banking and organized retail sectors. I look forward to continuing my work with the CMS team, which has built the company on the belief that trust and reliability are of utmost importance to its customers.”

About CMS Info Systems Limited
CMS Info Systems Limited (“CMS”) is India’s largest cash management company based on number of ATM points and number of retail pick-up points as of March 31, 2017.I CMS is also the fifth largest ATM cash management company worldwide (based on number of ATM points as of December 31, 2016). I For Fiscal Year 2017, CMS’s total currency throughput, or the total value of the currency passing through all of their ATM and retail cash management businesses, amounted to Rs 7,290 billion.

CMS provide a wide range of services across each stage of the cash cycle in India, from when the RBI initially deposits cash in branches of selected banks, called currency chests, that are authorised by the RBI to hold and distribute rupee notes and coins for circulation to banks, to when cash is deposited back in banks after going through the various stages of the cash cycle.

* Based on number of ATM points and number of retail pick-up points as of March 31, 2017.
Source: Frost & Sullivan “Assessment of Cash Management Services Market in India”, September 2017.

CMS Info Systems Limited (the “Company”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares (the “Equity Shares”) and has filed the draft red herring prospectus (the “DRHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP is available on the websites of SEBI, the BSE Limited and the National Stock Exchange of India Limited at www.sebi.gov.in, www.bseindia.com and www.nseindia.com, respectively, and on the websites of Kotak Mahindra Capital Company Limited, Axis Capital Limited and UBS Securities India Private Limited at www.investmentbank.kotak.com, www.axiscapital.co.in and www.ubs.com/indianoffers, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details they should refer to the Red Herring Prospectus, including the section titled “Risk Factors” therein, when available. Potential investors should not rely on the DRHP filed with the SEBI for making any investment decision.

The information contained in this document has been prepared for publication in India and is not for release, publication or distribution, directly or indirectly, in whole or in part, in, into or from the United States (including its territories and possessions, any of its states and the District of Columbia), Australia, Canada or Japan or any other jurisdiction where to do so might constitute a violation of the relevant laws or regulations of such jurisdiction. These materials do not contain, constitute or form part of an offer to sell or the solicitation of an offer to purchase securities in the United States or elsewhere. The Company’s Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration under the Securities Act except pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. There will not be any public offering of the Equity Shares in the United States or in any other jurisdiction outside of India.

Over the past six years, the Indian banking system has invested in the automated
teller machine (ATM) network to bring easier banking access to millions of
consumers at a far lower cost than the traditional channels. The ATM base grew three
times in this period —from 70,000 to over 220,000 — making India the fourth-largest
ATM market in the world. It has become the default channel for a consumer to access
the bank.

For the past ten days, a large part of this network is lying idle. The reasons are both
technical and supply related. To compound the issue, crowds wanting to deposit
older high denomination notes are as big as those queuing up to exchange notes or
for withdrawals. Banks have unwittingly made the problem worse by chasing
deposits as it accrues to their balances and ratios.

Finance minister Arun Jaitley has had to publicly point out that the need of the hour
is to prioritise disbursing cash rather than deposit mobilisation. Without a good plan,
the banks mobilising these deposits are soon going to run out of vault space to store
this currency.

The two immediate burning issues are supply of sufficient currency across the new
denominations of Rs 100, Rs 500 and Rs 2,000 and the need to physically recalibrate
the cassettes in all the ATMs so that they can dispense the new currency. This
recalibration effort took off to a very slow start and the finance ministry appointed a
task force led by RBI deputy governor SS Mundra to focus on this issue.

The pace has dramatically picked up as this task force brought together the banks,
ATM office equipment manufactures (OEMs) and cash management companies to
work in an integrated manner. As of November 17, more than 27,000 ATMs had
already been calibrated and about 60,000 will be done by November 19. The ATM
and cash management industry is rising to the target set out by the finance ministry
to complete recalibration of all ATMs in the next two weeks.

Coordination Must
The issue of supply of currency is being tackled by the RBI and availability is
increasing exponentially each day. However, the coordination between numerous
players in the ecosystem could be significantly improved to further expedite the time
frame for addressing this issue.

India has an outsourcing model for cash management that is layered with multiple
agencies involved, creating a degree of separation between the banks and cash
management agencies. Other than the banks and RBI, coordination is required
between the National Payments Corporation of India (NPCI), ATM OEMs, cash
management firms, white label ATM operators and managed service providers.

As various banks outsourced their ATM networks and deployment onto third-party
companies, the Indian market has evolved very differently from the rest of the world.
Banks here decided to outsource the entire value chain from the switching,
monitoring, maintenance and the cash management to thirdparty agencies, most of
whom have only some of these capabilities and depend in turn on other agencies.

Cash Management
In most parts of the world, the banks, while outsourcing their ATM deployments,
have kept control on the cash management function. Additionally, in many banks the
ATM channel economics changed with the bulk of deployment being carried by
independent ATM deployers, who aren’t getting priority for cash from banks who
need to control the scarce cash supply for their own branches and customers.

The bank branch infrastructure hasn’t evolved as rapidly in terms of the number of
teller counters and automation available in each branch as much as the ATM network
has. Consumers have got used to accessing the banks through the ATMs.

And it takes half the time to do a transaction at an ATM than a branch. The queues
can reduce drastically if the ATMs were to be supplied with currency in some
capacity, every day, first thing in the morning.

In most countries, cash management companies share a strong partnership with the
banks and central banks. In India, however, the cash management industry has been
kept at an arms’ length. Over the past days, some of our teams have been attacked
when they have gone about their job of stocking up ATMs due to consumer
frustration on lack of currency at ATM sites. These teams are among the first on the
ground during national disasters like floods and earthquakes. We hope the Indian
Bank Association and the RBI recognise the vital nature of services provided by this
industry.

Cash payments account for more than 75% of payments in India. While there may be
a shift in the future towards alternate forms of payment, cash and its service
providers still deserve proportionate focus and engagement from the powers that be.
The NPCI and the Indian Banking Association (IBA) haven’t recognised the vital
function which cash management firms play in the cash cycle.

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The CMS network spans over 105,000 ATMs, Retail pick-up points and Managed Services points, making it India’s largest Cash Management company and the world’s fifth largest ATM Cash Management company. CMS plays a key role across the cash value chain in India with clients that include leading banks in the country, along with financial institutions and top retail chains.